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Arc Minerals Ltd on Thursday said it signed an agreement with a subsidiary of FTSE 100-listed miner Anglo American PLC for the company's copper-cobalt project located in Zambia.
Arc Minerals shares were up 13% at 5.09 pence each on Thursday in London.
Through the joint venture, Anglo will have the right to retain a 70% ownership for an aggregate investment of up to $88.5 million.
As part of this investment, Anglo will make cash payments to Arc Minerals of up to $14.5 million.
Arc Minerals Chair Nick von Schirnding said: ‘This agreement represents a major turning point for Arc and follows many months of negotiations. I am delighted to be signing this agreement with Anglo American which will, upon execution and completion of the definitive agreements, result in the potential for significant investment by a reputable major mining company in the tenements in north west Zambia and a very exciting time ahead for us.’
The two have agreed an exclusivity period of up to 90 days to allow for due diligence, and up to a further 90 days for the negotiation and execution of the joint venture agreement.
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